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RecyclableResourcesMinerals, Paper, Glass, Etc.必看课件资料.ppt 24页

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Chapter 8 Recyclable Resources: Minerals, Paper, Glass, Etc. 8.1 Introduction Questions to be resolved: What is an efficient amount of recycling? Will the market automatically generate this amount in the absence of government intervention? How does the efficient allocation over time differ between recyclable and non-recyclable resources? 8.2 An Efficient Allocation of Recyclable Resources How would an efficient market allocate a recyclable depletable resource? In the earliest periods, reliance would generally be exclusively on the virgin ore, because it is cheapest. As more concentrated ores are extracted, the mining industry would turn to the lower-grade ore and to foreign sources for higher-grade ores. As the costs of virgin materials and of waste disposal rises, the attractiveness of recycling is increasing. 8.2 An Efficient Allocation of Recyclable Resources Consumers,as well as manufacturers, play a role on both the demand and supply side of the market. 8.2 An Efficient Allocation of Recyclable Resources On the demand side, consumers would find that products depending exclusively on virgin raw materials are subject to higher prices than those relying on recycled materials. Then, consumers would have a tendency to switch to products made with the cheaper, recycled raw materials, as long as quality is not adversely affected. 8.2 An Efficient Allocation of Recyclable Resources On the other hand, as long as consumers bear the cost of disposal, they have the additional incentive to return their used recyclable products to collection centers. By doing so, they avoid disposal costs, while at the same time reaping financial rewards for supplying a product someone wants. 8.2 An Efficient Allocation of Recyclable Resources In most cases recycling is not cheap. Transport and processing costs are usually significant As recycling becomes cost-competitive, rather dramatic changes occur in the manufacturing process. Not only do manufacturers rely more heavily on recycled inpu

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